1. Professor David Widdowson Centre for Customs & Excise Studies, University of Canberra ECA-SAL Conference Sydney, 24 August 2012

2. Government Policy: Laws relating to international trade Administrative Policy: The way in which those laws are administered

3. Preferential Rules of Origin: Giving effect to Free Trade Agreements

4. Prohibited and Restricted Goods: That may threaten community health, public safety and national interests

5. Trade Measures: WTO Anti-Dumping Agreement Protecting domestic manufacturers from –unfair import competition –or simply import competition?

6. Trade Facilitation: Facilitating legitimate trade

8. Revenue Collection Protection of Domestic Industry Community ProtectionTrade FacilitationSupply Chain Security

9. Designed to secure and facilitate trade Key concepts: –Authorised Economic Operator –Mutual Recognition 166 WCO members have agreed to implement

10. A party involved in the international movement of goods that is deemed to comply with WCO or equivalent supply chain security standards “…companies that demonstrate a verifiable willingness to enhance supply chain security will benefit. Minimizing risk in this way helps Customs in performing their security functions, and in facilitating legitimate trade”

11. “Australia’s border management agency has a responsibility to support legitimate trade and travel which it will do through: Promoting measures that allow Australia to be seen internationally as a secure trading partner Assisting Australian industry to meet the requirements of overseas authorised economic operator and like arrangements” –ACBPS December 2007

12. Australian survey conducted Key information missing: What is an AEO program? What would an Australian AEO program look like? What costs would be involved? What benefits would be involved?

13. What Customs concluded from the survey: “The results of the survey indicate that industry believes the cost of implementing an AEO program will outweigh the associated benefits. For this reason a cost-benefit analysis would be of little value at this time.”

14. To sum up: Why Customs wanted it: “It provides Customs with the ability to re-focus resources on higher risk activities, clients and commodities by recognizing the low risk and high levels of compliance by a Customs-identified Accredited Client group” Why Customs rejected it: “It’s not attractive to traders”

15. International enabler Mutual Recognition is critical Element of future FTA negotiations Commercial prerequisite

16. david.widdowson@canberra.edu.au www.customscentre.canberra.edu.au